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Channel Migration Retail Banks


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Creating channel migration strategies for a Retail Bank using Analytics Solution Overview In years gone by, a single channel used to be all that banks needed to deliver products or services to their customers. Customers are now demanding much more choice. Research shows that multichannel customers spend 20 to 30 percent more money, on average, than single-channel ones do
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Channel Migration Retail Banks

  1. 1. Creating channel migration strategies for a Retail Bank using Analytics Solution Overview In years gone by, a single channel used to be all that banks needed to deliver products or services to their customers. Customers are now demanding much more choice. Research shows that multichannel customers spend 20 to 30 percent more money, on average, than single-channel ones do, and channels such as the Internet promise big cost savings. Yet multichannel marketing is harder than it might appear. Retail banks are constantly struggling with managing high traffic in their branches. Meanwhile customers who walk into their branches are the costliest to serve and it is in the interest of the bank to steer customers towards lower cost channels.
  2. 2. Business problem-Net banking, Phone banking, Mobile banking & other channels How do we migrate more savings account customers to register and activate their Net Banking and Mobile Banking accounts? ■ How do we increase the width of Net Banking & Mobile Banking usage with customers? Can we get customers to use Net ■ Banking & Mobile Banking to “view balances” and also do transactions such as “fund transfer”? How do we prevent customers attriting from their month on month behavior? So how do we get them to remain “sticky” to Net ■ banking & Mobile Banking? How do we engage the customer with a life cycle approach? ■ Our approach Integrated Customer Analytical View- Marketing Solutions Data Integrated customer view – Marketing Data Mart Integrated customer view is the first hurdle that any bank meets. It is important to have all customer/account / transaction data at one place and to be able to link customers across their product holdings. In all probability, every product line within a bank sits on a separate system (mainframes or database). The Customer Information System (CIS) should be able to link all customers from various product systems and define the various relationships (house holding). If the Bank does not have a CIS system, then they need to build a marketing data mart wherein individual customers /accounts need to be gathered from various systems and the customer integration process begun. Cequity can help banks build the robust retail banking industry marketing system that is scalable to any size of business and also carry out the integration in a very seamless fashion. MARKETING DATA MART Customer Value Customer Sales Data Campaign Management Models Customer Value Offer Management Offer History Price Sensitivity Models Offer Response History Offer Personalization Offer Elasticity Incremental Value Response Incremental Value Rules Marketing ROI Measurement & Reporting
  3. 3. This marketing data mart will include customer attributes plus transaction information across channels, product holding and daily liability transaction detail linked with campaign history and response, including data quality processes and computation of a broad array of standard marketing metrics. Channel Start/End Date Transaction Type Channel Account Details te a e In d D Dat te Account re te Ra Type, Currency, ive n rt st ct ct E Sta Status, Balance, P od ct Pr odu Ef rodu uct Branch Pr Customer Customer Type fe Customer Segment Customer Demographics Using this marketing data mart attributes Cequity has the capability to build custom models and carry out a range of Analytical Solutions designed to meet banks specific marketing needs and business objectives. Analytical Solution Cequity’s Customer lifecycle approach can be customized to allow us to treat each segment differently. ■ Depending on the stage in the lifecycle a variety of Analytical Models can be built to change customer behavior. ■ NETBANKING CONSTRUCT New Acquisitions Registered but Registered but never used used ß New Registrations of liability customers ß Acquisition score card ß Activation Model ß Campaign Construct redesigned Dormant (Ever used Active Users (Ever Attrition-Proactive to use the model effieciently but not used for last six used in last six Retention ß Score cards by customer vintage months) months) ß Migration of customers from ß Customers who remain ß Tough Nuts ß Dormant reactivation non-financial towards financial in-active after dormant re-activation campaigns score card transactions ß ß ß Proactive retention activity Use Up-Sell score card Segment migration tracking once active ß Dormancy prediction model Retail Banking Industry Solution Functionality Customer Analytics Profile, segment and analyze the attributes, metrics Create Analytical Models to predict channel migration ■ ■ and behavior of customers and prospects over time cross-sell, up-sell, customer profitability etc. Visit patterns such as recency and frequency scoring index Customer acquisition and retention ■ ■ Create Channel penetration indices basis RFM Demographic, geographic and psychographic attribute ■ ■ Marketing Analytics Measure and analyze the incremental financial performance Marketing ROI ■ ■ of all marketing activities by campaign / promotion, marketing Response, offer redemption and promotion participation ■ channel, offer and individual customer or any other segment of customers
  4. 4. Our Services CEQUITY’S services are powered with deep domain expertise and process excellence by adding Intelligence to Information. Our banking Analytics consultants are capable of generating effective solutions to your business problems and quickly provide you with a competitive price and turn-around time. Choose from a wide array of reports covering demographic trends, consumer spending potential, business profiles, consumer segmentation, activity volumes and more. Our Analytical Consultants are qualified to provide deep insights by objectively analyzing vast amount of customer transactional lifestyle and secondary data to help make quick business impact. Our consultants have rich experience in key verticals like: financial services, insurance, mortgage, retail, travel, entertainment & telecommunications. Our analytics services include: CEQUITY BIZACTION – Modeling Services Insight2Action Acquisition Models Insight2Action Value-build Models Insight2Action Retention Models Prospect Modeling and Scoring Cross-Sell/Up-Sell Analytics Churn Prediction Lead Scoring and Enhancement Lifecycle Profiling Attrition Models Optimal Contact Strategy Development Response/Conversion Modeling Portfolio Analysis CLTV Modeling Segmentation Models About Cequity Customer Equity Solutions (Cequity) Pvt. Ltd. is an IT-enabled Customer Experience Management Company which will help enterprises improve marketing performance and accelerates customer relationships. We help enterprises by combining data, technology and services to build actionable analytical marketing frameworks, optimize marketing performance and accelerate real-time customer engagement. Thereby, enabling greater ROI on their marketing technology investments. Cequity brings a blended perspective which allows companies to bring the power of Marketing automation technology to business problems. Our services include: Customer Management Consulting Managed Campaign Management Services Managed Analytics Marketing Operations and Measurement Services Marketing Database Solutions Event Driven Marketing Services Contact us: Customer Equity Solutions Pvt. Ltd. INDIA USA Mumbai Office: Chicago Office: 105-106, 1st Floor, Anand Estate, 189-A, Sane Guruji Marg, 626, Grove Street, Evantson, IL 60201 Mahalaxmi, Mumbai-400 011, India Phone: +91 22 23000133 / 23054039, Fax: +91 22 23053809 Website: Email: